Citi hikes Fortescue's PT on 'modest beat', but sees weaker profit ahead

JIANDE INTERNATIONAL HOLDINGS

29/08/2022 20:31

** Citi hikes price target on Fortescue Metals Group
 FMG.AX  after the world's fourth-largest iron ore miner met
expectations for FY results
    ** FMG on Monday recorded a 40% drop in annual profit,
although that number was still its second-largest earnings ever
 urn:newsml:reuters.com:*:nL1N3040E7
    ** Co's annual underlying profit came in at $6.20 bln, down
from $10.35 bln last year, but above Citi's estimate of $6.03
bln 
    ** FMG's total FY22 dividend of A$2.07 per share beat Citi's
view of A$1.89 apiece
    ** Brokerage expects a steady dip in underlying profit over
FY23-25 as iron ore prices ease off elevated levels
    ** Citi hikes PT to A$18.60 from A$18.40, retains "neutral"
rating
    ** FMG dropped nearly 5% to A$18.89 on Monday, its worst day
since July 15
    ** Only one of 19 analysts rates the stock "buy" or higher,
seven "hold" and 11 "sell"; their median PT is A$17 – Refinitiv
data
    ** FMG down 1.7% so far this year, as of last close,
compared with Rio Tinto's 3.1% decline and BHP Group's 14.2%
gain

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))